Israeli Finance Watchdog Seeks to Ban Public Firms from Bitcoin Trading

Bitcoin trading companies in Israel may soon face a tighter rule imposed by the country's financial watchdog.

AccessTimeIconDec 27, 2017 at 6:15 p.m. UTC
Updated Sep 13, 2021 at 7:18 a.m. UTC

Bitcoin trading companies in Israel may soon face tighter rules imposed by the country's finance regulator.

According to Reuters, the head of the Israel Securities Authority (ISA) Shmuel Hauser said in a business conference on Dec. 26 that a proposal will be presented to the ISA board next week, which seeks to ban any company that has a major involvement in bitcoin trading from the Tel Aviv Stock Exchange (TASE).

Hauser told the news agency:

"If we have a company [and] their main business is digital currencies, we would not allow it. If already listed, its trading will be suspended."

According to Hauser, if the proposal is approved, it would go through a public hearing before the domestic exchange is required to abide the new laws.

Such a move is perhaps seen as a follow-up to the ISA's decision in late August to probe into regulatory laws on initial coin offerings (ICOs). At the time, the organization was said to be planning to release a report for recommendations before the end of December.

The regulation proposal may also be seen as a response to the market trend where public companies have seen their stock price spike after rebranding to something related to the blockchain and cryptocurrency – a trend also reflected on the stock exchanges in the U.S.

As identified by Reuters, at least one public company Blockchain Mining (BLCM.TA) has seen a 5,000 percent surge of its stock price within months after announcing to shift from mining gold to cryptocurrencies. However, the company later changed its name Natural Resources on Sunday, according to the news outlet.

Hauser's comment also follows a volatile market for cryptocurrency, particularly, last Friday on Dec. 22, when the market saw perhaps the largest single-day correction. The cryptocurrency market capitalization first hit as low as $418 billion, nearly 30 percent down from its all-time-high earlier last week. But it soon bounced back over $500 billion and reaching $584 billion as of press time currently.

Israeli flag via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.